Money Issues You Will Need to Consider Before Retirement Abroad
Whether your dream is to live in an exotic location when you retire or just make your nest egg go further before making your retirement plans, consider the new money management rules you will be dealing with.
Charles Schwab outlines some of the requirements for American retirees who relocate to another country, including the need to still file US taxes (social security, retirement plan withdrawals, and so on) and avoid double taxation:
Most likely, you must file a tax return in your country of residence as well. How can you avoid double taxation? The US has treaties with over 65 countries around the world to help you avoid double taxation in the US and at your home abroad. Expats can get a foreign tax credit on their US return for taxes paid elsewhere.
In fact, if you make money in the country where you choose to live, you could benefit from foreign earned income alienation, which allows expats to exclude up to $ 100,800 of foreign income from their total annual income.
From studying the rules of buying property in another country to deciding on your medical care and banking options, there is a lot to think about before becoming an expatriate in your golden years.
Going abroad? Financial Facts You Need To Know | Charles schwab